Roman Abramovich to pull off Russia’s second-largest office deal

Billionaire Roman Abramovich is close to buying one of the biggest top-end office complexes in Moscow for up to $800 million in what would be Russia‘s second-largest office deal, three sources told Reuters.

White Gardens, a development comprising two buildings in Moscow’s business district, is the second stage of the White Square complex recently bought by Russian company O1 Properties for about $1 billion.

The sellers, a consortium of developer AIG/Lincoln and Russian bank VTB Capital, are close to selling White Gardens to Abramovich’s investment vehicle Millhouse, two sources close to the deal and a market source said.

AIG/Lincoln, VTB Capital, a unit of VTB (VTBR.MM), Millhouse, and property consultant Jones Lang LaSalle (JLL) (JLL.N), which is advising on the deal, all declined to comment.

Moscow’s rents for top-end office space have risen to $1,150 per square meter per year from around $700 in 2009, according to JLL, but have yet to reach the levels seen before the 2008 financial crisis.